Help to buy scheme: the clock is ticking if you want to apply

theguardian.com:

It was launched with great fanfare in 2013 and has been credited with helping many thousands of young people and families on to the housing ladder – but it has also swallowed up billions of pounds of taxpayers’ cash and been accused of pushing up property prices and boosting housebuilders’ profits.

The government’s help-to-buy scheme has taken various forms over the years and is finally set to end in March 2023.

However, the key deadline is a lot sooner than that: first-time buyers who want to take advantage of it have only got a little over three months left to reserve a property and apply.

The current version of the scheme offers a government loan – AKA an equity loan – to enable people to buy a newly built property with a deposit of only 5%

The 31 October deadline for applications only emerged at the end of May and is two months earlier than had been expected.

A survey published this week found that 73% of first-time buyers were unaware this is the last date you can reserve your home and apply. Some will have assumed they had until early next year.

During recent weeks, adverts from developers with headlines such as “Your last chance to buy”, “Buy! (Before it’s goodbye)” and “Last remaining apartments available …” have been appearing in newspapers.

But it is important for those thinking about signing up to fully consider whether help to buy is right for them and make sure they are aware of all the financial implications.

With the deadline looming, “you might be tempted to race for the door before it closes. However, if you’re in too much of a rush to get to grips with what you’re getting into, you could be in for a nasty surprise in five years’ time,” says Sarah Coles, a senior personal finance analyst at the investment firm